Bankrupt Izhmash stunned by its inclusion in U.S. sanctions list

July 31 2015

Interfax

Interfax

The Izhmash concern, which has gone bankrupt and is currently in liquidation, has ceased manufacturing so it cannot possibly have any relations with the United States or Europe, a spokesperson for the company's liquidator told Interfax on July 31.

The Izhmash concern, which has gone bankrupt and is currently in liquidation, has ceased manufacturing so it cannot possibly have any relations with the United States or Europe, a spokesperson for the company's liquidator told Interfax on July 31.

Cooperation with the Kalashnikov Concern is maintained only as part of the bankruptcy procedure, so the U.S. sanctions are surprising and bewildering, he said.

The news of the bankrupt company being put on the sanctions list caused "two feelings, both of surprise and bewilderment," he said. "Because we have no contract with the U.S.," he said.

"Effectively, we no longer conduct any business, no manufacturing, we do not produce anything. In fact, we do not even have any assets left, the company is going into liquidation," the spokesman said.

He also said that the company currently cooperates with Kalashnikov "in terms of the bankruptcy procedure only, the Kalashnikov Concern being its main creditor."

"This should not have any effect on our [bankruptcy] procedure because our company is in liquidation and we act within Russian, not international law; in fact we maintain no international relations, let alone with representatives of the U.S. or Europe," the spokesman said.

Before 2011, the Izhmash Concern was part of Izhmash Group. In September 2011, the company was declared bankrupt and started bankruptcy proceedings.

On July 30 the U.S. authorities extended their sanctions list by adding, in particular, the Izhevsk Mechanical Plant and the Izhmash Concern as the affiliated companies of the Kalashnikov Concern, which has already been on the list.